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Westfall Watches has two product lines: Luxury watches and Sporty watches Income statement data for the most recent year follow Sales revenue Variable expenses
Westfall Watches has two product lines: Luxury watches and Sporty watches Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 Luxury $370,000 Sporty $130,000 375,000 255,000 125,000 115,000 120,000 10,000 78,000 $47.000 39,000 $70,000 39.000 $29,000) Assuming the Sporty line is discontinued, tolal fixed costs remain unchanged, and the space fommerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected? A. Increase $209,500 OB. Increase $162,500 OC Decrease $162,500 OD. Increase $287.500
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